The gaming industry is abuzz with rumors of significant layoffs and potential studio closures at Xbox, with several prominent studios reportedly at risk of being shut down. Compulsion Games, the developer behind South of Midnight, is among the studios said to be in jeopardy, along with Hellblade developer Ninja Theory and Psychonauts developer Double Fine.

According to sources close to the situation, these studios are negotiating with Xbox to potentially buy themselves back and go independent, although this would likely result in significant job cuts. Employees at these studios have been made aware of the situation and are being given permission to look for new work.

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  • Xbox is undergoing a major restructuring effort, dubbed the 'Xbox Reset', to address ongoing issues such as declining revenue and overly complex systems.
  • Several studios, including Compulsion Games, Ninja Theory, and Double Fine, are reportedly at risk of being shut down or sold off.
  • Studio employees are being given permission to look for new work, and some have already taken to social media to announce their job searches.
  • Xbox's layoff plans and studio closures are part of a larger effort to streamline the company's operations and refocus on core gaming initiatives.

As the situation continues to unfold, one thing is clear: the future of these beloved studios hangs in the balance. Source: Game Informer